Investing.com - European stocks rose sharply on Monday, as market sentiment was boosted after highly anticipated elections in Greece resulted in the victory of pro-bailout party New Democracy, easing concerns over the risk of a Greek exit from the euro zone.
During European morning trade, the EURO STOXX 50 jumped 0.84%, France’s CAC 40 surged 1.02%, while Germany’s DAX 30 advanced 1%.
Sentiment strengthened as political parties supporting Greece's international bailout were to begin forging a government on Monday, after an election victory over radical leftists staved off the prospect of the debt-laden country leaving the euro zone.
Conservative New Democracy leader Antonis Samaras called for broad support after winning Sunday's election over the radical Syriza party, which had threatened to cancel the aid deal in defiance of the country's lenders.
Investors remained cautious however, as concerns over the handling of Greece’s financial crisis persisted. While all eyes turned to Germany for possible concessions on the harsh budgetary restrictions imposed on Athens, German Foreign Minister Guido Westerwelle said on Monday the substance of Greece's reform program remained non-negotiable.
Financial stocks were broadly higher, led by Italian lender Unicredit, up 2.71%, while France’s BNP Paribas and Societe Generale surged 2.34% and 2.36% respectively.
Germany’s two biggest lenders, Deutsche Bank and Commerzbank, also contributed to gains, with shares rallying 1.62% and 2.68%.
Meanwhile, Nokia Oyj soared 5.53% after ABG Sundal advised buying the mobile-phone maker’s shares.
Repsol also saw shares climb 2.20% amid reports Mexico's Carlos Slim, the world's richest man, acquired an 8.4% stake in YPF, the recently nationalized Argentine subsidiary of the Spanish oil firm.
In London, FTSE 100 advanced 0.78%, supported by strong gains in financial and mining stocks, while industry data showed that house prices in the U.K. rose 1% in June.
Shares in Lloyds Banking jumped 1.82% and Barclays climbed 1.39%, while HSBC Holdings gained 1.26% and the Royal Bank of Scotland rose 0.77%.
Mining giants Rio Tinto and Bhp Biliton were also among the session’s top gainers, climbing 1.87% and 1.76% respectively, while copper producers Xstrata and Kazakhmys advanced 1.23% and 2.28%, on the back of higher copper prices.
Evraz mining company also jumped 2.56%, despite reports the firm is being sued by a Swiss business partner over a USD 500 million port infrastructure project which turned sour.
Oil and gas major Anglo American added to gains, as shares surged 1.37%, as did BP and Essar Energy, up 0.27% and 1.80% respectively.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.09% rise, S&P 500 futures signaled a 0.20% increase, while the Nasdaq 100 futures indicated a 0.32% gain.
Later in the day, a G-20 summit was due to begin, amid hopes it could produce fresh measures to combat the crisis in Europe.
In a statement, G-20 leaders said it was in "all our interests" for Greece to remain in the euro zone while respecting its international bailout commitments.
During European morning trade, the EURO STOXX 50 jumped 0.84%, France’s CAC 40 surged 1.02%, while Germany’s DAX 30 advanced 1%.
Sentiment strengthened as political parties supporting Greece's international bailout were to begin forging a government on Monday, after an election victory over radical leftists staved off the prospect of the debt-laden country leaving the euro zone.
Conservative New Democracy leader Antonis Samaras called for broad support after winning Sunday's election over the radical Syriza party, which had threatened to cancel the aid deal in defiance of the country's lenders.
Investors remained cautious however, as concerns over the handling of Greece’s financial crisis persisted. While all eyes turned to Germany for possible concessions on the harsh budgetary restrictions imposed on Athens, German Foreign Minister Guido Westerwelle said on Monday the substance of Greece's reform program remained non-negotiable.
Financial stocks were broadly higher, led by Italian lender Unicredit, up 2.71%, while France’s BNP Paribas and Societe Generale surged 2.34% and 2.36% respectively.
Germany’s two biggest lenders, Deutsche Bank and Commerzbank, also contributed to gains, with shares rallying 1.62% and 2.68%.
Meanwhile, Nokia Oyj soared 5.53% after ABG Sundal advised buying the mobile-phone maker’s shares.
Repsol also saw shares climb 2.20% amid reports Mexico's Carlos Slim, the world's richest man, acquired an 8.4% stake in YPF, the recently nationalized Argentine subsidiary of the Spanish oil firm.
In London, FTSE 100 advanced 0.78%, supported by strong gains in financial and mining stocks, while industry data showed that house prices in the U.K. rose 1% in June.
Shares in Lloyds Banking jumped 1.82% and Barclays climbed 1.39%, while HSBC Holdings gained 1.26% and the Royal Bank of Scotland rose 0.77%.
Mining giants Rio Tinto and Bhp Biliton were also among the session’s top gainers, climbing 1.87% and 1.76% respectively, while copper producers Xstrata and Kazakhmys advanced 1.23% and 2.28%, on the back of higher copper prices.
Evraz mining company also jumped 2.56%, despite reports the firm is being sued by a Swiss business partner over a USD 500 million port infrastructure project which turned sour.
Oil and gas major Anglo American added to gains, as shares surged 1.37%, as did BP and Essar Energy, up 0.27% and 1.80% respectively.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.09% rise, S&P 500 futures signaled a 0.20% increase, while the Nasdaq 100 futures indicated a 0.32% gain.
Later in the day, a G-20 summit was due to begin, amid hopes it could produce fresh measures to combat the crisis in Europe.
In a statement, G-20 leaders said it was in "all our interests" for Greece to remain in the euro zone while respecting its international bailout commitments.